Create Correction Invoice

Explanation

Correction and credit invoices are much alike. Both are used to rectify errors made through debit invoices but it is a legal requirement in some countries to create a correction invoice to rectify errors. The difference is that when created, corrective invoices will contain two lines (credit and debit) while credit invoices will contain only a single credit line. Correction invoice reports and the method of making corrections on these invoices, is also slightly different.

Note: This activity is used to create correction invoices independent of material returns. Correction invoices can also be created for customer order returns after the return has been entered in the Return Material Authorization window (refer to activity Create Correction Invoice for Returned Goods).

Note: For rental invoice lines, the correction invoice has no value since the recreated debit rental transaction will be used on the correction invoice and it cannot be manually updated. The reason for allowing correction invoice for rentals is that an invoice can include a mix of sales and rental lines, and for the sales lines updating is still possible.

Prerequisites

Correction invoices may be created with reference to the following:

• Debit invoices: if no correction invoice has already been created for the debit invoice. Invoice type should be CUSTORDDEB or CUSTCOLDEB.
• The last correction invoice: if correction invoices have been created with reference to the debit invoice. Invoice type should be CUSTORDCOR or CUSTCOLCOR.

It is possible to create correction invoices with reference to a debit invoice, even after a credit invoice has been created for it. (Note that it is not possible to create corrective invoices with reference to credit invoices or vice versa).

The reference invoice must be in status PostedAuthorized, PaidPosted or PartlyPaidPosted.

System Effects

A correction invoice is created for exactly the same amount as the debit invoice (or reference invoice).

Status will be Preliminary. Invoice type will be CUSTORDCOR (if reference invoice type is CUSTORDDEB or CUSTORDCOR), or CUSTCOLCOR (if reference invoice type is CUSTCOLDEB or CUSTCOLCOR).

The created corrective invoice will contain two lines (debit and credit) for each debit line on the reference invoice. The two lines will contain equal positive and negative values, with the Preliminary Update Allowed check box selected for the debit line, and the net amount being zero. Note that even for debit lines on the reference invoice with a zero amount, the corresponding debit and credit lines will be created with zero amounts.

The Latest Ship Date field on the Customer Invoice/General tab will display the latest shipping date of the reference invoice. A latest shipping date is not displayed if the reference invoice itself has no latest shipping date.

If the original invoice is associated with a project, the correction invoice is also posted to the same project.

Window

Create Correction Invoice
Customer Invoice

Related Window Descriptions

Create Correction Invoice
Customer Invoice

Procedure

To create a correction invoice from the Create Customer Correction Invoices window:

1. Populate to view all customer invoices in status Posted Authorized, Paid Posted or Partly Paid Posted for which correction invoices can be made.
2. Query for or select the appropriate customer invoice.
3. Right-click and select Create Correction Invoice. Click OK to the message that appears.
4. Open the Customer Invoice window. Query for the correction invoice created.
5. Change information on the correction invoice as required (only debit line values are editable). You can hide the negative value line by clearing the Show credit lines for correction invoice check box in the invoice line properties View Credit Lines tab.
6.  Save.

To create a correction invoice from the Customer Invoice window:

1. Populate or query for the relevant customer invoice.
2. Right-click on the header and select Create Correction Invoice. Click OK to the message that appears.
3. Query for the correction invoice created.
4. Change information on the correction invoice as required (only debit line values are editable). You can hide the negative value line by clearing the Show credit lines for correction invoice check box in the invoice line properties View Credit Lines tab.
5. Save.

To remove a Credit or Correction Invoice:

1. Populate or query for the invoice in question.
2. Right-click on the window header and choose Remove Credit/Corr. Invoice.
3. A message box is displayed. Click OK to confirm the removal. The invoice is now removed.